Professional Documents
Culture Documents
INTERNSHIP
REPORT OF
PIA (2018)
Department of Management
Sciences
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Internship Report Author: Faiez Amin Khan
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Internship Report Author: Faiez Amin Khan
Acknowledgment
Up and above anything else, all praises to Almighty ALLAH alone, the all-powerful,
the most merciful and most compassionate. And after Almighty ALLAH to HIS
Prophet, MUHAMMAD (PBUH), the most perfect and exalted, who is forever a
source of guidance and knowledge for humanity as a whole.
I am very thankful to all the staff members of PIA i.e., Mr.Bashir and Mr.Irfan Shafi
from HR Department, Mr.Hafiz Irfan Shokat and Mr.Kumail from Ticketing and
Reservation Department, Mr.Usman Sheikh from Finance Department and Mr.Irfan
Sheikh from Sales and Marketing Department their support, patience and their precious
time. Without their Help and guidance it was not possible to complete. Their constant
helped, enabled me to treat this work objectively and comprehensively.
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Internship Report Author: Faiez Amin Khan
Executive summary
I did internship in PIA for 6 Weeks. This experience was very informative for me the
following report is consisting of my 6 Week experience.
My report consists of and contained information about the PIA history, its Vision and
Mission statements and Organizational hierarchy. I discussed the marketing strategies
of PIA .In which I explained Marketing Mix, Target Market, Segmentation,
Branding Strategies. I also discussed Competitive Strategies. And then I explained
in detail the SWOT Analysis of company.
And in last I gave references through I got data and footnotes in which mentioned the
names of that persons who helped me out to make this report. I also mentioned the
jargons used in my report.
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Internship Report Author: Faiez Amin Khan
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Internship Report Author: Faiez Amin Khan
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Internship Report Author: Faiez Amin Khan
In 1959, the Government of Pakistan appointed Air Commodore Noor Khan as the
Managing Director of PIA. With his visionary leadership, PIA 'took off' and within a
short span of 6 years, gained the stature and status of one of the world's frontline
carriers. In aviation circles, this period has often been referred to as the "golden years
of PIA".
Development, expansion, and growth were keywords that the new management was
committed to. In March 1960, PIA launched its first Boeing 707 jet service on the
London-Karachi-Dacca, route which later proved to be very successful. This trail-
blazing accomplishment resulted in PIA becoming the first Asian Airline to operate a
jet aircraft, setting trends for the future. In 1961, the airline took on the mammoth task
of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had
placed orders for more new aircraft, which included Fokker F-27s, Boeing 720Bs and
Sikorsky helicopters. Helicopter services in East Pakistan had gained momentum by
1962 and expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi. PIA's
helicopter services carried over 70,000 passengers during the first year of operation. At
the time, it was regarded as a stellar operation, equal to any other in the world.
Unfortunately, due to two mishaps, the service was discontinued in 1966.
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Internship Report Author: Faiez Amin Khan
The first airline in the world to fly to Tashkent, capital of the newly
independent state of Uzbekistan.
First airline in the world to start Air Safari with jet aircraft.
First Asian airline to start flights to Oslo, the capital city of Norway.
First airline in the world to induct the Boeing 777-200LR, the world's longest
range commercial airliner.
First airline in the world to take delivery of the Boeing 777-200LR Worldliner
(Longer Range Variant).
Pakistan International Airlines Flight Services Department was awarded the
ISO 9001:2000 certification award during May 2006.
First airline in Pakistan to operate a flight with an all female crew at command
and in the cabin.
First airline in the world to operate the Boeing 777-200ER, 777-200LR and
777-300ER altogether - all the three variants available on the market.
PIA Flight Kitchens in Karachi were awarded the HACCP Certificate. (Hazard
Analysis and Critical Conrol Points)
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Passenger
Type Total (Business/Economy Routes Notes
Plus*/Economy)
184
long, medium and short haul
(12/40/132) 6 leased
Airbus (Europe, Far East, Gulf,
12 205 from Airbus
A310-300 Subcontinent and Domestic
(18/43/144) industry.
routs)
(18/45/142)
short haul
ATR 42- 48
7 Domestic, Afghanistan and
500 (0/8/40)
Gulf
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Internship Report Author: Faiez Amin Khan
320
Boeing long, medium and short haul 1 of which
(35/45/240)
777- 4 (Europe, Saudi Arabia USA is leased
329
200ER and Domestic from ILFC
(35/54/240)
Updated
40 February
2009
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Internship Report Author: Faiez Amin Khan
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Internship Report Author: Faiez Amin Khan
Mission
PIA's vision is to be a world class airline exceeding customer expectations through
dedicated employees, committed to excellence.
Vision
Employee teams will contribute towards making PIA a global airline of choice:
Offering quality customer services and innovative products
Participating in global alliances
Using state-of-the-art technologies
Ensuring cost-effective measures in procurement and operations.
Core Values
Customer Expectations
o Convenience, Caring, and Competitive Tariff
Service
o Personalized and Courteous
Innovation
o Cherishing New Ideas, Translated Into Action
Cohesiveness
o Respect for Individuals, Teamwork, and Effective Communication
Integrity
o Business Ethics, Accountability, and Transparency
Reliability
o Loyalty and Consistency
Safety
o Passengers, Employees, Environment, and Health
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Internship Report Author: Faiez Amin Khan
Objectives of PIA
Like any other organization PIA’s real goal is to expand, grow and earn as much revenue as
they can through providing good services to the customers efficiently.
After segmentation which is done above PIA make strategies to provide the services
to audience.
From Geographic Segmentation PIA targeting the customers lived in whole around
the world as residence or for business purpose.
From Demographic Segmentation PIA targeting the income and occupation oriented
customers.
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Internship Report Author: Faiez Amin Khan
Positioning of PIA
Currently PIA position itself within the following positing strategies.
Positing By Features
Positing By Price And Quality
Positing By Product User.
Positioning By Features
o By using this strategy the PIA position itself in minds of customers by explain
it different features. Like PIA position itself in mind of customers as the most
safe air transport service. Because if we look into the history of PIA then we
will come to know that it is the only airline company which has the lowest
accident rates. So by positing on that feature PIA attracts more customers. And
people also prefer it due to this feature.PIA also has different safety
certificates like
o IATA operational safety Audit (IOSA)
o Civil aviation authority Of Pakistan (in accordance with the international civil
Aviation organizations standard
Positioning By Price And Services
o PIA has cost advantage. So they also offer lower priced and provide the best
services to their customers as compared to their competitors.
o Introduction Of Additional Low Cost Flights
o PIA introduced low cost flights in economy classes.
Positing By Product User
Branding
Brand is the name, term, sign, symbol or design or the combination of these that identify
the maker or seller of product or service. In our product PIA is our brand which help customers
to identify the product that might benefit them. Branding give some benefits to sellers and also
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Internship Report Author: Faiez Amin Khan
provides the legal protection. Reaction of people traveling with us. Demographics factors also
consider in it. Time efficiency .due to good quality of aircraft they move nonstop. So time
minimize.
PUSH Strategy
Through Advertisement.
Electronic Media. T.V FM Radio.
Print Media. Bill Board, sign Boards.
Online Media.
Sponsorship .Set Packages. Like give shirts with PIA logo.
Reawaken of Brand
This is done by telling about the great and glorious history of PIA to attract the customers.
Service
s
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Internship Report Author: Faiez Amin Khan
To pursue the marketing objectives in the target market marketing mix is used. It is a set consist
of four P’s, Product, Price, Place, and promotion .That was given by the McCarthy.
Product
The thing which is offered in the market by the company to satisfy the needs and wants of
customers called product. Products are of two types. They can be tangible or may not be part
of products which are not touched or have physical existence is called services. And this is the
product of PIAC.
Services are not owned by someone .This is the process in which one party offer it and another
purchase it. Services consist of activities, benefits, or satisfactions
That are offered to customers for sales .Intangibility, inseparability, satisfactions are the
featured of services. As these features have not any physical existence so they require more
adaptability, supplier credibility and quality Control.
Inseparability
Services are produced and consumed simultaneously. Person who is offer the service and
person who buy that services both are part of services .Person who is offering the services
should be efficient and well trained because in that way only he can sell his services and can
convince to customers to buy them. So in this way both person effect on the outcome.
Variability
Services are those parts of products which are highly variable. Changes in services come
according to customer demands, requirements, and competitor’s strategies etc .Now a days
customers have more knowledge about market and they want more facilities at lower cost. So
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Internship Report Author: Faiez Amin Khan
if they find any attraction towards the competitors they will prefer them more .In this way
company should able to accommodate the customers wants. To attract more customers PIA
should improve the quality by giving more training to its employees for dealings with
customers. PIA should also examine the customer satisfaction level, and survey should conduct
to know about the customers quires.
Intangibility
Services do not have any physical existence, they can not be tested, felt, seen, heard and smelled
before they purchase. So these are more difficult to promote and attract customer to buy them.
In this way before the use the results of the services can not be seeing. Before purchase the
services customer satisfied himself buy check its record, by ask from others like world of
mouth, and analysed evidence of the service quality, by price, by compare it with competitors
services.
Perishability
Services cannot be stand for long time .there is no any shelf life of services. When demand is
steady the Perishability of the services is not a problem .Because in this way the employees
can be trained in advance to face the situations .Fluctuations in demands create problems for
firms which are offering services .PIA wants to buy advance technology with the new and large
aircrafts but due to change in demands irregularly in peak and slack period management cant
not invest a lot.
Price
Organizations for profit purposes always set its objective to meet its revenue targets .Price is
amount which customers pay to company for its services. Market share and profitability of the
organization is only determined by this element of marketing mix. Its only tool of marketing
mix which create revenue for the company.
PIA has two types of services and its big task for it to manage the price for both services
effectively.
1: Revenue Tickets
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Internship Report Author: Faiez Amin Khan
For domestic and international routes PIA sets its price by follow the procedure.
For domestic routes the fairs are set by the head office Karachi. Cost plus method use in PIA
for setting price. By analysing the pricing objectives, use of aircrafts, RBDs level, competitor
fairs and discounts, and estimating cost. Then final price charged to the customers.
For international routes the fairs are set by the international air travel associations. IATA does
not offer any off any discounts .But to promote the Sales the PIA allows its agents to give
discount offers to its customers.
Promotion
Pakistan international Airline provide various types of discounts for the promotion or through
Advertisement.
Competitors
Competitors Analysis
Competitors are those factors which cant not ignored by any company to go ahead. For gain
more market share competitor analysis is most important. Because through this company come
to know about the strong and weak points of current and potential competitors.
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Internship Report Author: Faiez Amin Khan
PIA competitive strategy is Differentiation strategy. Only airline which has its different classes
like Economy class, it has further RBDs like (K, T, M, and N) and for business class RBDs are
( B,S,C,J ).PIA also have business plus class PIA understand the needs and wants of customers
and offer different and unique product characteristics.
Flanking strategy
PIA has a flanking strategy. Flanking strategy is direct attack strategy on competitors. PIA
started to provide its services to remote areas of Pakistan than its competitors. Its main
competitors Air Blue do not have its access to those remote areas. Due to this strategy PIA
using the flanking strategy.
As PIA providing its services at national and international levels both. So its competitors at
national and international level both are present.
Domestic Competitor
At national level PIA major competitor is Air Blue .Air Blue start its journey from Jinnah
terminal as private airline. It’s also providing its services at national and international level
both. But still their destinations are less than PIA. Air blue at international level providing its
services to Dubai, and Manchester. Its main advantage is that it was 1st airline in Pakistan which
introduces the e-ticketing.
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Internship Report Author: Faiez Amin Khan
International Competitors
PIA aircrafts have direct access to the destinations like it reach the customers direct to Jeddah
from LHE, KHR for Umrah.
At peak season of Umrah and Hajj additional flights also operate to take customers at Jeddah.
Boeing 777s provides the comfortable and luxurious journey for pilgrims.
PIA also provides the free pick and drop services to customers. But this offer is only present
for Business class.
International Services
South East Asia North America
Malaysia Canada
o Kuala Lumpur o Toronto
Thailand United States
o Bangkok o New York City (JFK)
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Internship Report Author: Faiez Amin Khan
Southwest Asia
Europe
Bahrain
o Manama Denmark
Kuwait o Copenhagen
o Kuwait City France
Oman o Paris
o Muscat Ireland
Qatar o Dublin [plan to start
o Doha Dammam Summer 2009/pending
o Jeddah approval]
o Riyadh Italy
United Arab Emirates o Milan
o Abu Dhabi Netherlands
o Dubai o Amsterdam
o Sharjah Norway
o Oslo
Russia
o Moscow (Sheremetyevo
Airport)
Spain
o Barcelona
Turkey
o Istanbul
United Kingdom
o Birmingham
o Glasgow
o Leeds/Bradford
o London (Heathrow &
Stansted Airport)
o Manchester
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Internship Report Author: Faiez Amin Khan
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Internship Report Author: Faiez Amin Khan
Domestic Services
Punjab Balochistan
o Bahawalpur o Dalbandin
o Dera Ghazi Khan o Gwadar
o Faisalabad o Panjgur
o Lahore Hub o Quetta
o Multan o Turbat
o Rahim Yar Khan
o Sialkot
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Organizational Structure
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Internship Report Author: Faiez Amin Khan
Departments of PIA
Pakistan International Airlines
Flight Operations
Flight services
Finance Department
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Internship Report Author: Faiez Amin Khan
Funds Management
Accounting
Internal Audit
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Internship Report Author: Faiez Amin Khan
The duties and functions of a typical finance department can be classified into two generic
categories. The first category is PLANNING and the second function is
CONTROLLING. These activities are inter-related and inseparable because if there is no
planning these will not be any control. Therefore, planning and control move together.
Planning refers to the activities, which bridge the gap from the starting point to the terminal
point. Planning in the finance department under review refers to the activities of Cash Flow
and Budget preparation. These are the major activities (planning) in any such department.
Functions of Finance Department
Planning
Planning is fundamental to the management process, a process of sensitizing an
organization to external opportunities and threats, of determining desirable and possible
objectives, and of deploying resources to match the objectives. Without planning there is
no basis for controlling for planning provides the foundation upon which the control
function operates. The planner should be able to visualize the proposed pattern of activities
individually and collectively, internally and externally.
Budgets
The budget is not only the most important plan of an enterprise, but also the basic link of
accounting with management. The use of budgets, particularly in connection with the
control phase of management has been termed as “budgetary control”. A company’s
organization chart and its chart of accounts from the basic framework on which to build a
coordinated and efficient system of managerial planning and budgetary control. The
organization chart defines the functional responsibilities for the budgets rests with
executive management, all managers are, responsible for the preparation and execution of
their departmental budgets. If a budgetary control system is to be successful, these
managers must fully cooperate and must understand their role in making the budget system
successful.
Controlling
This function of the finance department is carried out in the light of standards
set in the planning stage. The actual performance is compared with the preplanned
objectives and standards, which lead to the rectification of any deviation and
improvement suggestions, which will assist in the future planning. Management control
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Internship Report Author: Faiez Amin Khan
Out of the nine divisions in the department “Revenue Division” is the most
important division. Some of the important divisions/sections are described below in
detail.
Revenue Division
Airline sells space and services and these are measured in terms of money. Revenue
division controls the revenue in terms of money. It is further subdivided into these
sections:
a) Passenger Revenue
b) Cargo Revenue
c) Interline Revenue
d) Pricing
For each type of the revenue stream there is an independent unit. So Revenue Division is
discussed in units:
A. Passenger Revenue:
i. Sales: Revenue function starts from printing of tickets. Thickets of airline
contains few coupons with a jacket (bearing instruction on it) tickets are sold
at station and at agents offices. Sales of tickets may be:
(a) Direct Sale or
(b) Indirect Sale
Direct sales mean sale at stations of PIAC, whereas indirect sales are by agents.
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a) Direct Sale
There are many locations for direct sales all over network of PIA. Three types
of ticketing are practiced i.e. manual ticketing and auto ticketing and E-Ticket.
Manual ticketing involves procedures of pencil paper work on printed tickets.
Whereas auto ticketing involves advance system of computerized ticketing and
on the spot computerized ticket printing. Regarding direct sales following four
documents are important:
The ticket has four/three coupons. First is audit coupon, second is issue office
coupon, third flight/lift coupon and fourth the revenue coupon. Flight coupons
are arranged for one/two or four sectors. Audit coupon and flight coupons are
most important coupons. Because flight coupon is the only coupon to be used
either for lift, or for refund/reissue/travel on non-PK carrier, etc. whereas as audit
coupon is meant for PIA’s revenue record. Audit coupons are sent to head office
with sales statements from each station. Accounting to entry is based on audit
coupon.
These documents contain, audit issue office and exchange coupons, these are
meant for exchange if for the time being you don’t want to travel but want to
block a seat. Or if you were charged higher fare than the class you travelled in.
iii. Prepaid Ticket Advice (PTA):
This is for sponsoring the tickets or the relative, friends, etc. for any other
country/destination the money paid by the person sponsoring the ticket in
advance and after the checking of the documents of the nominee of the sponsored,
sponsored is issued this ticket. The responsible station communicates through
telexes.
Agency Sales:
There are three types of agents selling tickets of PIA. IATA approved agents,
General Sales Agents (GSAs) and Non-IATA Agents. Agents are paid commission on
domestic 5% and on international 9% and sometimes paid 3% above the normal rates.
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Internship Report Author: Faiez Amin Khan
Agents as well as stations are required to submit the sales statements. These may be
daily/weekly/monthly as the case may be.
Refund Unit:
Persons who do not report 72 hours before the flight the seat are automatically
canceled. In case of international tickets the unused tickets are fully refunded. Jacket
covering the coupons of the ticket bears instructions and procedure of cancellation
charges with specified rates.
PIA policy that it facilitate its customer if the flight is cancelled due to any
reason than PIA will not charge any amount to the customer and the refund amount will
be fully paid. I have observed that at my work in PIAC Islamabad /Rawalpindi station
most of the refund cases were of domestic flight for Gilgit and Skardu.
Accounting Unit:
Disk/information received from all stations sometimes enables this unit to
monitor accounting and prepare floppies and transmit them to the main frame. In PIAC
accounting is fully automated and computerized. Few stations have on line systems too
however manual work is not totally eliminated due to non-availability of the on line
systems at some stations.
Man
Assist Assist
ant ant
Ac Ac Ac Ac Ac
co co co co co
unt unt unt unt unt
Sales Unit:
Sales may be of two types; sales on PIA’s own counters and sales by agents.
When cargo sales are made airway bills are prepared by stations/agencies. Stations are
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Internship Report Author: Faiez Amin Khan
responsible for reports to head office about airway bills, both of agents and stations.
Agent’s reports to stations and stations to H.O. Cargo sales may be domestic or
international. R-2 is statement regarding domestic cargo sales and international cargo
sales for PIA counters whereas R-11 is a statement for agent’s cargo sales. R-3 is
collection report. R’s are returns prepared by the stations and sent to lift unit. Lift unit
keeps the tracks of the cargo sales revenue and monitors the preparation and collection
made by stations.
i. Receivable:
When passenger from any other purchases ticket airline but lifted by PIA.
ii. Payable:
Some other carrier but lifts passengers purchases when ticket from PIA.
These transactions are settled through IATA clearance house. IATA clearance house
has its member airlines are dealt according to the standing agreements with them. As
IATA regulates the airline industry in the world most of the settlements are through
IATA. Sometimes revenue is divided according to sectors carried. These types of the
settlement are made on the basis of mileage. This is called probation. For settlement
there are three currencies in which payments are receipts are made.
European Currency
US Dollar
Pound Sterling
Pricing
This section of the revenue division was established in 1975. It acts as regulating
authority of the airline. According to IATA rules approved fare written on the face of
the tickets should be charged as that fare is approved. But the airlines undercut their
fare especially in other than the base country. This section monitors these underground
unethical violations of the IATA rules.
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Internship Report Author: Faiez Amin Khan
When other airlines undercut fares and PIA feels that it must also undercut, the
station managers prepares proposals about fare expected to be charged and sends these
proposals to marketing department. Marketing Department analysis the proposals and
approve them after comparing with last year’s figures. Final approval is made by
“director sales.
Marketing Department
Today world is going to change continuously. So PIA cannot keep itself away to follow the
trends in market. In airline industry there exists a tough competition. Economic changes,
advance technology, relaxation from government rules forced PIA to face a number of
challenges in market. With the more awareness among customers about market situation they
want best quality of services. Efficiency in marketing strategies makes the success possible of
any company. A wrong perception about company in tough competition causes to ruin its name
forever. Price assessment, different traveling packages, customer analysis, customer needs,
cost factors, concession to regular customer are those facts on which company makes its
strategies. So for make more customer more loyal, fulfil their needs, to gain more market share
effective and efficient strategies should be made. Figure
Marketing
Department
Passengers Sales
Department
Cargo Sales
Department
Ticketing and
Reservations
Tours Promotion
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Internship Report Author: Faiez Amin Khan
Sale promotion is the main sub section of the sales section. One of the primary functions is to
promote the sales and generate the revenue. The Passenger Sales Manager (PSM) who is
assisted by Sales Promotion Officers (SPO) and one Assistant Passenger Sales Manager heads
the PAX (Passenger) Sales Section.
Passenger’s Sales
Manager
The targets are assigned to the SPO’s for this purpose and they are motivated to achieve those
targets. SPO’s go to the fields, before leaving they fill a form about their program and when
they come back they fill the called report. Every manager has his own way of working.
This section is headed by passenger sales manager and there are sales assistant managers all
the SPO's have defined their agency and their report about the agency to agency assistant sales
managers. They cover all the 72 IATA and 30 non IATA agencies under IATA group 7%
official incentives or concession is approved for the agency on international routes and 3% on
domestic routes. Basically the incentive is directed toward the wholesales. They give the
incentives to the agency according to their efficiency. It is only done at that time when agents
give bulk business. Management tries to give incentives on the bulk quantity because 83% of
revenue is generated by the traveling agencies.
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It has a genuine reason i.e. PIA offices are in the particular area and agents are very familiar
with the environment and their offices are spread over the city and it helps the passenger to go
indirectly to the traveling agencies.
In simple words the head office authorities specify for station Pax Sales Section that it has to
take a particular number of passengers to a particular sectors in that financial year. To meet
these targets, the Pax Sales Section, convert into revenue targets for each sector. These revenue
targets are again divided on monthly basis, i.e. specify parts of these revenue targets are set for
a particular sector, to be achieved in a particular month. For the achievement of these revenue
targets, the Pax Sales Section formulates “Marketing Plan” and determines the Marketing
Strategy considering the previous year’s performance. For its monthly performance, it makes
a monthly district activity sales report, which is sent to the head office for the information of
the concerned authorities. For the achievement of these revenue targets the Pax Sales Section
takes the help from various agencies (travel agents). There is also different District Sales
Managers (DSM) for different districts like Chitral, Swat, Abbottabad, Bannu and D.I.Khan;
who are assigned a part of these targets to be achieved.
Generally speaking PIA has three major types of commission travel agents, who also help the
Pax Sales Section in the achievement of these targets. These travel agents are GSA, PSA and
IATA
The GSA is PIA approved travel agent. These are those agents which operate in those areas
where PIA is not providing services.
The PSA are PIA’s approved agents for the sales of domestic as well as international tickets.
International Air Travel Agents (IATA)
The IATA approved agents are those who deal with the sales of PIA as well as other airline
documents. These kinds of agents do not have any obligation to sell any particular airline;
rather they are free to sell any airline’s ticket, which they find suitable both for the passengers
and for themselves. International Air Travel Agents they work on international face and deals
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Internship Report Author: Faiez Amin Khan
with different airlines like, Emirates, Qatar airline, Saudi airline, etc included PIA .these are
registered agencies and pay a guarantee of 7 Million to airline for registration
These agencies also deal with different airlines but not registered. They are less trustworthy
because they work as private agents and risk of fraud and mismanagement also taken into
consider in these agencies.
Special Prorate Agreement. According to this agreement the places and areas where PIA is not
providing services they make an agreement with different airlines to reach the passenger there
and special charges are make and contribute among air lines.
Portion
Division of a joint fare, rate or change between different carriers concerned on agreed basis.
If there is not many passengers than they carry the passengers of 2 airlines together in one
airline.
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Internship Report Author: Faiez Amin Khan
Earning revenue through PAX sales or cargo sales for the organization is the main and
important function of the marketing department.
Pax sales and cargo sales every year receives target from head office for the
revnue.They have to achieve those targets at any cost.
For achieve the revenue target Management divide the yearly target into months. And
then at the end of every month they analysed weather they achieve their monthly target
or not.
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Internship Report Author: Faiez Amin Khan
Reservation means the accommodation held by a passenger on a given flight and the passenger
is to be carried from boarding point. Reservation and ticketing section is headed by TOM
(Ticket Office Manager) who is directly responsible to Passenger Sales Manager (PSM).
Though there is acute competition seen among different airlines. So ticketing and reservation
plays a vital role in advertising their product and in the promotion of good will of the
corporation.
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Internship Report Author: Faiez Amin Khan
Ticketing is the LIFE BLOOD of PIAC, because most of the revenue is generated through
ticketing and reservations. Proper and sound reservation system and plans are required to
achieve the goals and objectives of any airline. Reservation system at PIA booking office is
kept to serve the customers at their best. For better services the office has been divided into
different categories in order to carry out different functions. These categories are:
Flight Checks
Flights check is very important and sensitive area in the PIA. Where the booking is originated
either it is from the travel agent or from the organization booking department. After
understanding the bio data is feeded in the computer and all information relevant to the
passenger and their requirements and staffs is kept. Flights are checked three times before
departure respectively 72 hours, 48 hours, 24 hours before the departure of the flight. Senior
members are checked different flights lists before 72 hours and if some problems are incurred
then they contact with the operator and also the agents to confirm the seat. . Before 48 hours
or 24 hours the list is checked and if there is some problem found then they contact to those
agents in case of seats lying vacant.
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Internship Report Author: Faiez Amin Khan
Reservation on Telephone
PIA also providing the home delivery services of ticket to passengers. Passengers made their
order by calling on help line .this request goes automatically in mail box. Then they provide
ticket to customers at home and take payment from them in form of credit cards and cash both.
Discounts offers
Students got 10 % discounts individually but now since few days PIA not offering this type
of discount.
50 % discounts to Army.
Award Plus+
PIA brings its upgrade Frequent Flyer programmed with a variety exciting rewards awaiting
for passengers. As esteemed members they will not only enjoy elite benefits but also to redeem
A+ miles for free tickets, class upgrades and excess baggage vouchers.
It issued three types of membership cards according to these cards different benefits provided
to members
A+ Emerald benefits
A+ Sapphire Benefits
A+ Diamond benefits
Web ticketing
PIA Web Ticketing is now available for domestic flights and passengers traveling between
Pakistan and UK, USA, Canada.
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Internship Report Author: Faiez Amin Khan
Tickets in award plus is retained for 1 year. And booking on request is only available in award
plus.
Tours Promotion
To eliminate the gap between the different people, regions, and country tourism plays a vital
role. That’s the reason Tourism consider a very positive factor for reading social and political
precautions. By travels a climate of understanding good will and tolerance became create and
employees engage with tourism profession work hard to promote it.
In Pakistan the concept of tourism is growing very fast as compared to previous year. And it is
also very beneficial as economical prospective. In Pakistan this industry can be grow at very
fast rate. By knowing all these factors PIA makes its strategies to promote it at national and
international level both. Pakistan has a lot of Blessings of God. Its beautiful northern Ares
create a great attraction for tourists. So PIA tourist main objective is to exploit the name of
Pakistan. And also to gain maximum market share Tourist department make strategies that how
they can attract the customers within and Tourism is a very profitable business now days.
Market potential is increasing at very fast rate. Tourism can play a vital role in countries
economy as it is the 2nd largest company in world after oil. In many countries under the
government direct care and involvement tourism is a great source of increasing income. If
proper strategies are made and implemented then this business can improve the economic
condition of market.
Through effective promotion by PIA can attract a steady stream of tourism industry in Pakistan.
As Pakistan has an ideal location with rich and varies resources.
PIA is the only national air flag carrier in Pakistan playing key role in promotion of tourism in
Pakistan. Pakistanis hospitality culture and progressiveness in activities are clearly shown in
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Internship Report Author: Faiez Amin Khan
PIA .Tourists from whole world have a direct and very fast resort to get to know about Pakistan
and how to travel with it airlines.
For promotion of tourism in Pakistan PIA management put great focus to develop strategies
which will increase the market share of PIA in tourist fields. And will also attract more
customers to travel at national and international level both.
Tourism has got prime importance among many Asian countries and they give top priority in
their marketing plans. The trends of world tourism also indicate PIA's decision about gearing
itself especially for tourist traffic.
By analyse the importance of tourism a corporate Manager has been assigned by PIA
management at its main terminals. And its field’s offices have been working at various cities.
To set packages and different offers to attract large customers at both national and international
level.
Develop strategies to attract traffic on PIA routes.
Help and guide the tourist groups during journey.
Development of tour packages along with applicable costs at a given time besides production
and supply of publicity material.
Promote Festivals in Pakistan and outside the Pakistan.
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Internship Report Author: Faiez Amin Khan
Functions
Main Steps are
Recruitment
Placement, Selection and Place.
Training & development
Compensation
Employees relation
CBA
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Internship Report Author: Faiez Amin Khan
PIA is the biggest international organization of the country. So it has large number of graduates
from all over Pakistan. Posts for managerial and non-managerial positions are advertised with
requirements on newspapers and websites.
From candidates response a pool of applications are formed and after selection a test is
conducted and toppers are called for interviews. Those candidates who clear the interviews
have to go through a medical test. And finally with the approval of high authority appointment
letters are send to them. On very 1st day of their job they are given an orientation and then they
are send to the concerned departments.
To enhance the skills of new hired employees they are given different trainings within the
passage of time. So that they may able to perform their duties more well. Whole profiles of
employees are maintained. And P number is assigned to every employee.
Employees are given different packages, incentives, medical facilities, and free tickets. It’s the
duty of employees to maintain the discipline of organization. In case of any violation of rules
they have to call for investigations.
Job duration of every employee in PIAC is consisting of 25 years mean at the age of 60.
SWOT Analysis
Strengths
Strengths are found in the internal environment of the organization. They are the backbone of
an organization. Strengths of an organization can overcome any kind of weaknesses that the
organization is facing. PIA has a number of strengths due to which it is still one of the leading
airline in Pakistan. These are as following
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Internship Report Author: Faiez Amin Khan
Electronic Ticketing
PIA also providing the facility of E-ticketing. Customers now can make their booking
online and can take print and will make payment during boarding.
Boeing-777
PIA acquired Boeing-777 aircrafts in 2002 from Boeing Company, which have the
capability of taking long flights all around the world. PIA is having core competency
over its competitors and Boeing-777 is generating reasonable revenues for PIA.
Coming Back To Home
P.I.A officials admit that the airline is maintaining the traditional Pakistani environment
in its flights which attracts the local passengers within the country as well as outside to
choose PIA as its fleet. PIA recognizes it as the advantage over its competitors like
Emirates, Air-Blue etc.
Poultry-Business
PIA is engaged in the poultry business as well to provide fresh meat to its In-flight
kitchens to avoid the low quality meat. Not only this but other airlines also consult PIA
for this purpose.
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Internship Report Author: Faiez Amin Khan
Hotel Business
PIA owns number of hotels within the country as well as outside the country which .
. are considered as the strength of P.I.A to generate revenues.
Weakness
Weaknesses are also found in the internal environment of the organization. Weaknesses if
more in quantity can break down an organization easily. They can overcome the strengths as
well. PIA also faces a number of weaknesses which are as following
Government Intervention
Government intervention create main problem for PIA management to carry out their
operations. Govt. opposed high taxes as results fairs will increase and also referencing create
problem and also restrict the rights of employees to be fulfilled.
No Availability of Freighters.
PIA does not have freighters to carry cargo at national and international level both .due to this
they cannot cover the market to completely to carry luggage from 1 place to another place.
Attitude Problem
PIA is facing obstacles due to rough attitude of its in-flight staff. Most of the
passenger’s opinion about PIA staff is that they do not behave according to the
standards set. Than “Why Come Fly With P.I.A?”
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Internship Report Author: Faiez Amin Khan
Opportunities
Opportunities exist in the external environment. They need to be recognized and used
according to the business being run. An opportunity recognized and utilized at the right time
will be the strength of tomorrow. Such kind of opportunities also exists for PIA in its external
environment. Some of them are as following:
Fleet Expansion
As the social trends of customers are changing they should expand their fleets to meet the
current and future demand of the customers.
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Internship Report Author: Faiez Amin Khan
In the current global economic conditions most of the airlines have delayed their orders
with BOEING and AIR-BUS due to financial losses. It is the right time for P.I.A to
purchase these delayed orders from manufacturers because manufacturers can be inspired
to deliver the fleets on discount rates as these manufacturers do not want to retain their
orders that are delayed by other airlines.
New Markets
There are several countries in which P.I.A is not making its flights. In fact in these markets
P.I.A can earn much more revenue. For instance P.I.A can deploy its BOEING-777 on long
routes which may include Barcelona, Seoul, and Madina etc.
Currently there is a golden opportunity for P.I.A to sale out its old aircrafts because
currently the dollar has fluctuated to its peak rates, so the earnings should be utilized in
betterment of financial position of P.I.A.
Threats
External threats can damage the business performance of every organization. These threats can
be reason of bankruptcy. PIAC is well established organization yet there are some threats which
PIA has to face.
Insufficient Fleet
PIA as the national carrier of Pakistan customers more preferred to it. But PIA does not have
enough numbers of fleets to meet the demand of customers. For this reason they preferred other
airlines.
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Internship Report Author: Faiez Amin Khan
Domestic Destinations
PIA has a big threat that its competitors providing services to customers at domestic levels. So
PIA should also focus to provide more services at point where its competitors are trying to
reach.
Leakage of Money
According to rules If there is any mistake related to documents of any customers then PIA
have to pay charges as a crime/and in this way a big amount of PIA is lost due to these charges.
Maintenance Incapability
PIA does not pay more attention towards the maintenance of PIA fleets .and as a result they
became phase out. And no longer used for travel.
Just like other organizations PIA is under continual threat of environmental changes. As
PIA is engaged in the global business it has to take into account the international
environmental factors along with the local factors. Keeping in view such variables the
management has to abandon certain projects or delay them which cause severe losses to the
airline.
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Internship Report Author: Faiez Amin Khan
Competitive Environment
PIA was enjoying its monopoly recently but after the CAA has authorized private
companies to enter in the airline industry they are giving tough time to PIA through their
better services and innovative strategies.
Due to increasing inflation rates in Pakistan the purchasing power of the customers have
been affected due to which the business of PIA is also affected which results in declining
revenue graph of PIA.
Due to the current global economic melt-down the liquidity of the airline has been affected
and P.I.A which is already suffering for survival is facing the problems of liquidity i.e.
lacking of enough reserves to pay its instalment debts on the aircrafts purchased previously.
Terrorism
Tourists are avoiding to visit Pakistan due to the terrorist activities in the country. Most of the
foreign countries have warned their citizen to avoid going to Pakistan. This factor is a threat
for the revenues of P.I.A as it has lost the customers outside the country.
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Internship Report Author: Faiez Amin Khan
EMPLOYEE EMPOWERMENT
PIA should make efforts towards empowering the employees that is going to lead to more
employee participation in the decision making process and also result in more employee
satisfaction and enhanced motivation. Apart from this, employees would feel more independent
to discuss the issues explicitly without hesitation. This would also enhance team work process
at PIA as quality team and cross-functional teams. The employees will work with more
commitment and dedication and every employee would work to his/her fullest due to increased
motivation. However, with empowerment comes accountability, so it is suggested that while
they empower their employees, there should also be a “controlled check’’ on them to ensure
the correct usage of power delegated to every employees within their circumscribed limits.
OVERHEAD COSTS
PIA should also reduce its overhead costs that are it should manage its resources: labour more
effectively, so that with less input, more output can be achieved and the saved resources can
be utilized in other areas such as introducing more training courses for the employees so that
the quality of the workforce could be increased. Hiring the services of expertise can improve
the efficiency of their services, so by saving the overhead costs, they can utilize that money for
the expertise services. So by analysing the various segments of the organization and making
the right corrections.
TWO-WAY COMMUNICATION
The suggestions of the employees can prove to be very effective in improving the operations
as they are the ones who manage them. Therefore, a top-down approach should be replaced
with two-way communications. In this way, the employees would feel motivated and valued
as they would be included in decision-making.
IMPROVEMENT IN SERVICES
PIA should provide services according to customer’s need not according to Pakistani/local
culture in order compete with their competitors. Properly train air hostess make them familiar
with different foreign languages.
HIRING ON MERIT BASIS
PIA should remove all the employees appointed on political grounds, because most of them
are more like a burden on PIA expenditures as they are getting salaries for nothing. On the
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other hand skilful and talented engineers should be paid reasonable salary package to motivate
them.
PROPER UTILIZATION OF FLEETS
What we have analysed that P.I.A is using four engine plans even for the short roots like
Islamabad and Lahore. We recommend that the P.I.A should use two engine fleets for short
roots in order cut some maintenance cost.
Conclusion
By conducting the SWOT analysis of company I came to know that by utilize its strengths
more effectively. PIA can gain a large market share. PIA should invest to overcome its
weakness. Like old fleets should be repaired in that way their cost can be reduced. And PIA
should also purchase the freighters to increase the sales at cargo department. PIA should avail
its opportunities to gain the competitive advantage. PIA should also make those strategies to
attract the business and economy plus classes by giving those best and luxurious facilities.
Threats should be overcome because it gives chance to potential competitors to enter into
market and compete.
THANK YOU
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